This is an extract from a recent EIU article commissioned by Reed Smith. To read the full article, click here
"Patent law is in a crucible moment in the US, and by extension it is in a crucible moment around the world," says Michael Fertik, chief executive officer of Reputation.com, an online reputation management company that holds six patents and has 30 more pending. "As a society we are still figuring out what the extent of patents in technology should be and can be. And what the enforcement action should be and can be," he says. Over the next five years, as these questions are answered, there is likely to be greater conflict and agitation concerning IP in the US, and consequently overseas, according to Mr Fertik.
Executives in a recent EIU survey, sponsored by Reed Smith, believe that theft of IP is set to become a greater challenge in BRIC and other rapid-growth markets. Out of the respondents who have not been involved in an international commercial dispute recently, 35% think that theft of IP will be the most likely cause of a commercial dispute involving their organisation in BRIC markets over the next two years.
The threat to IP appears to be of greater concern among executives from the media and technology, and healthcare and life sciences sectors, according to the EIU survey. “Every time we look at the opportunities from a business development point of view, IP rights are always high on the agenda,” says Jacob Tolstrup, vice-president for corporate business development and strategy at Lundbeck, a Danish life sciences company that has products registered in more than 100 countries.
It is difficult to say exactly where intellectual property laws will be in five years' time globally. What is apparent, however, is that more and more countries are tuning their IP laws to US standards, and will continue to do so. This could eventually lead to internationally accepted rules for IP protection. Mr Fertik stresses the importance for any company to be able to develop technology with an engineering team overseas in a way that is safe for shareholders back at home. If a country wants to attract “knowledge economy” jobs, then it must be able to protect intellectual property in a way that is "comparable and fair".
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.
